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THE ONLINE REPORT: WHY ONE SIZE DOESN’T FIT ALL

Welcome to our latest re-think supplement that looks at the most recent developments

in online annual reports. With the concept of best practice being an evolving area we

wanted to take a step back, draw breath, and assess what has actually happened over

the last six months in online fi nancial reporting.

Richard Coope of salterbaxter identifi es 10 companies that use their online reports to

solve different business-specifi c issues. He highlights emerging trends and provides

perspective on what really matters for online reporting in 2009. Stuart Bartram of Aviva,

shares why measurement and tracking is essential in developing a best-in-class online

reporting programme.

RE-THINK SUPPLEMENTS

www.salterbaxter-rethinktank.com

The re-think supplements are regular feature pieces linked to our online research and debate forum,

the re-think tank. The re-think tank is the place where commonly held views are challenged, new ideas

fl ourish and boundaries are broken. Because we have a strongly-held belief that most things can be better

– they just need better insight, brighter ideas and more creative thought. You’ll fi nd articles, opinions and

research on the big business and communication issues of the day, from sustainability to more effective

digital marketing. Regular contributors include leading players and thinkers in all the fi elds we operate –

so you’ll be in good company.

GET IN TOUCHAbout salterbaxterEstablished in 1998, salterbaxter is one of the UK’s leading creative consulting businesses.

We advise organisations on corporate branding, corporate responsibility, employee

engagement, corporate reporting and digital programmes.

If you would like to fi nd out more about us, please call or email Louise Dudley-Williams

T: +44 (0)20 7229 5720. E: ldudley-williams@salterbaxter.com

JOIN THE DEBATE: www.salterbaxter-rethinktank.com

HOTTOPIC

The issue: DMGT diversifi ed away from UK

newspapers to become a more international

media business. Their reporting challenge was

to communicate their digital innovation and how

they have moved from a traditional newspaper

business to a diversifi ed media company.

The approach: The site includes an interactive

Flash banner explaining their diverse business

portfolio and long-term commitment to ‘Creating

Media Brands That People Love’. The site

includes a dynamic timeline and interactive

dividend chart showing how the business has

progressed over ten years.

The result: DMGT are using specifi c interactivity

to demonstrate innovation and strong

performance. Only appropriate site tools are

used to deliver their clear strategic message.

The investor response is positive with the report

experiencing a 63% increase in new visits

compared to last year.

http://www.dmgtreports.com/2008

1 DMGT DEMONSTRATES DIGITAL INNOVATION

RICHARD COOPE : HEAD OF DIGITAL : SALTERBAXTER

5 SHELL PUTS REPORT FINANCIALS INTO CONTEXT 6 LEGAL & GENERAL SHOWCASE STRATEGY

THROUGH THEIR SENIOR TEAM 7 INTEGRATING CR INTO BG GROUP’S CORPORATE REPORTING HUB

The issue: 2008 was a year of turbulent global

markets and extreme fl uctuations of oil prices.

Against this uncertain backdrop Shell needed

to explain their overall performance within

a long-term strategic context for investor

audiences.

The approach: The new site has a simplifi ed

navigational structure. A useful download

manager includes detailed Excel spreadsheets

allowing investors to review the raw fi nancial data.

This year the site tools include a ‘Compare to

2007’ button, allowing analysts to review

year-on-year performance data.

The result: Shell clearly worked hard to make

the report information as readable as possible.

Shell sets the report into an appropriate

context by providing useful supporting material,

such as a guide to the Financial Statements,

a ‘Chart Generator’ and Excel downloads for

the Financial Statements.

http://www.annualreview.shell.com/2008/

servicepages/keyfi gurescomparison.php

The issue: Legal & General’s challenge was to

address their investor concerns over fi nancial

transparency issues. They had to demonstrate

a clear strategic approach and showcase the

strength of their leadership team.

The approach: The report homepage shows a

revolving carousel introducing the Executive

management team in video format. Clicking on

the images directs users to video introductions

that explain how the business has been

performing. The theme of leadership and a

cautious approach to risk management is

followed throughout the report.

The result: The appropriate use of video creates

a sense of transparency, responsibility and

personal accountability in Legal & General’s

strategic management. It also clearly shows

a unifi ed management team putting strategy

into action.

http://legalandgeneralgroup.com/ara_2007/

servicepages/welcome.html

The issue: BG Group needed to consolidate their

approach to fi nancial and non-fi nancial reporting

to help investors truly assess their overall

business performance. They also wanted to

provide other shareholder information to provide

a broader context to business performance.

The approach: BG Group have developed a

corporate reporting hub, using a single microsite

with consistent navigational principles, that

incorporates the Annual Report, Corporate

Responsibility Report, Summary Financial

Statements and AGM information.

The result: The online reporting centre is a

unique example of how a combined approach

can be used to communicate key reporting

material to stakeholders. It provides a single

point of reference and is a fully integrated

approach to reporting for investors.

http://www.bg-group.com/OnlineReports/ara/

index.html

THE ONLINE REPORT: WHY ONE SIZE DOESN’T FIT ALLWE ARE LIVING THROUGH AN AGE OF FUNDAMENTAL CHANGE IN CORPORATE REPORTING AND THE COMPANIES ACT PROVIDES AN OPPORTUNITY TO CAST OFF THE RIGID CONVENTIONS OF THE PRINTED REPORT. MANY COMPANIES HAVE BEEN GRAPPLING WITH HOW BEST TO USE THIS NEW FREEDOM AND MAKE THE MOST OF THEIR ONLINE FINANCIAL REPORTS.

ONE THING IS CLEAR – THE DAYS OF ‘ONE SIZE FITS ALL’ FOR CORPORATE REPORTING ARE OVER. PEOPLE WHO THOUGHT OF THE ONLINE REPORT AS A BIT OF A HOLY GRAIL ARE REALISING THERE IS NO SIMPLE SOLUTION. EACH COMPANY IS APPROACHING ONLINE REPORTING DIFFERENTLY AND FOLLOWING THE HERD IS NO LONGER DELIVERING THE BEST RESULTS.

HERE ARE TEN CAREFULLY SELECTED EXAMPLES OF COMPANIES THAT HAVE USED THEIR ONLINE REPORTS TO SOLVE UNIQUE BUSINESS-SPECIFIC ISSUES.

CONTACT: ldudley-williams@salterbaxter.com : salterbaxter, 202 Kensington Church Street, London W8 4DP. T: +44 (0)20 7229 5720JOIN THE DEBATE: www.salterbaxter-rethinktank.com

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2 AVIVA RECOGNISES RETAIL INVESTORS WANT SOMETHING DIFFERENT 3 VODAFONE CREATES CLARITY

FROM COMPLEXITY 4 USERS ARE KEY FOR THE BRITISH LIBRARY

The issue: Integration was the main issue Aviva

had to deal with this year. Financial information

had to be collected from 27 different countries

worldwide, whilst the business re-branded under

the ‘one Aviva, twice the value’ proposition.

The approach: Aviva kept it simple. The report

has an intuitive navigation and easy to read

interface design. There is a specifi c section

addressing retail investor concerns, called

‘Recognising the needs of our customers’

and a private shareholder section for future

e-communication. Users can also download

their own report pack and review the Financial

Statements in Excel format.

The result: Aviva has cleverly thought through

the requirements of their retail and institutional

shareholders. The structure, content and

functionality of the site has integrated well with

the new Aviva brand. See Stuart Bartram’s article

overleaf for more details.

http://www.aviva.com/fi les/reports/2008ar/index.

asp

The issue: With the printed report running at

160 pages, Vodafone’s Director of Corporate

Affairs, explained that the challenge for the

online version was ‘not to let the weight of all

that information obscure the message… people

need to fi nd the information if they want to drill

down further’.

The approach: Vodafone has worked hard to

tell a complex story simply to their institutional

investors. The homepage is presented within a

portal interface, providing quick access to deeper

content. The excellent ‘Business Overview’

depicts in simple design terms how the Vodafone

business is structured and how the international

operations connect.

The result: Vodafone provided page-turning

PDFs in the past, however institutional investors

required a more bespoke approach. The latest

online report adds clarity and context for these

investors and provides simple options to explore

deeper content.

http://www.vodafone.com/static/annual_report/

index.html

The issue: The British Library’s remit is broad

and their user groups diverse. They needed

to identify new ways to show how the expertise

and knowledge gained by users transformed

into tangible solutions.

The approach: The online report features video

clips of the Library’s users talking about how

the Library inspires and supports them. The

Chief Executive’s video statement offers a

behind-the-scenes insight into how the Library

works. Report readers can also ‘Add a comment’

or use an interactive poll to respond to the

report content.

The result: The British Library has won the

Best Annual Report (Public and Voluntary

sector) at the Accountancy Age Awards for the

last three years. Many listed companies are now

incorporating these interactive techniques to

engage report users.

http://www.bl.uk/about/annual/2007to2008/

8 TELIASONERA EMBRACES MULTILINGUAL MULTIMEDIA 9 CENTRICA MAKES IT CLEAR

AT FIRST GLANCE 10 BARCLAYS BRAVELY OPENS UP TO EXTERNAL SCRUTINY

The issue: Teliasonera is a mobile and fi xed

network services provider to the Nordic and

Baltic countries. As a dual listed company on the

NASDAQ OMX and Helsinki stock exchange it

needed to fi nd innovative ways to communicate

its report content in multiple languages to

international investors.

The approach: The online report is published

in English, Swedish and Finnish. The report

provides an audio commentary making it

accessible to an international audience. An

interactive map provides country specifi c data,

in particular their expansion into the emerging

markets of Russia, Turkey and Spain.

The result: Incorporating regional differences into

one online report structure makes the report a

unique experience for online audiences. Expect

more international companies to use multilingual

multimedia like this in 2009.

http://www.teliasonera.com/annualreport/2008

The issue: The challenge for Centrica was to

encourage private shareholders to view this year’s

Annual Report online. The focus was to clearly

explain the Chief Executive’s strategy to be the

leading integrated energy company to both

specialist and non-specialist investors.

The approach: Centrica focused on keeping

their report simple to read and easy to navigate.

It includes a clear and simple overview of

Centrica’s integration strategy using an intuitive

Flash animation. The ‘At a Glance’ section

provides a snapshot that explains the integrated

nature of their business.

The result: The online report skilfully balances

the needs of both retail and institutional

audiences. It succeeds in this by helping

investors to ‘self-serve’ the information they

need through clear information architecture,

supportive FAQs and helpful additional

shareholder information. It is also reassuringly

easy to navigate.

http://www.centrica.com/fi les/reports/2008ar

The issue: Barclays has come under intense

pressure for greater disclosure from regulators

and investors alike. The challenge for the bank

was to be more open and transparent to rebuild

shareholder confi dence, in particular to the

bank’s approach to risk management.

The approach: The latest online report includes

remarkably frank videos from the Chairman and

CEO. Users are welcomed to the site and

immediately asked for their opinions. The site

includes an excellent ‘Your view’ section where

users are asked to post questions directly to the

Chairman. It provides FAQs, a site survey and an

invitation to join a shareholder workshop to help

Barclays improve their future online reporting.

The result: Barclays have taken the leadership

step of opening up to external scrutiny. This

brave approach is likely to set a precedent for

future online reports and refl ects their overall

external tone to these unprecedented times.

http://www.barclaysannualreport.com/ar2008

CONTACT: ldudley-williams@salterbaxter.com : salterbaxter, 202 Kensington Church Street, London W8 4DP. T: +44 (0)20 7229 5720JOIN THE DEBATE: www.salterbaxter-rethinktank.com

CONTACT

US

SO WHAT CAN WE LEARN FROM THESE OBSERVATIONS? 1. You can’t achieve everything, so focus on what matters to your business

and its stakeholders – each company has a different investor profi le and

a unique business issue that needs solving. Companies clearly need a

tailored approach and should evolve a reporting programme over time.

2. Don’t forget to tell your story – fi nd compelling ways to explain your

report narrative online. Flash animations, interactive maps and multimedia

help to bring that story to life. Keep your messages consistent and relevant.

Consider contextual information for your retail audiences, where appropriate.

3. Deliver what investors want quickly – investors are impatient so make

it easy for them to fi nd the information they need. Focus on usability and

provide additional format options, such as Excel downloads of Financial

Statements, to help analysts compare performance within your sector. If

budget is limited then use simple PDFs, but avoid the dynamic page-turning

PDFs at all costs (they’re not compliant with accessibility guidelines).

4. Integrate – look at simple ways to integrate your suite of reports

into a Corporate Reporting Centre with a distinct URL (ie. www.

barclaysannualreport.com). Be consistent with the information you

share and provide quick links to contextual investor information.

5. Measure success – spend time to understand how investors use your

report. Track where they have come from (Registrars email, from your own

site, Google search, etc.) and research for how long they stay on your site.

FINALLY A FEW WORDS OF CAUTIONDon’t be seduced by distracting ‘bells and whistles’ – avoid unnecessary

functionality that detracts from the user experience. Technology should

be used to help the user gain a better understanding of the company.

Watch out for website restrictions – many companies suffer from restrictive

corporate website templates that make their report content diffi cult to

navigate. Consider developing a report microsite independent from the

corporate website.

Be clear who reads your report online – work on building a long-term

engagement with your shareholders through your e-communications. Offer

surveys, ask for feedback and run usability workshops to understand what

investors really want to see from future online reports.

Avoid a tick box approach – ticking the so-called best practice boxes for

online reports without due consideration to your unique business issues

will only lead to investor disappointment.

Reassuringly the approach to online reporting is now starting to refl ect the

various audience needs and the different problems that companies want

to solve. We expect to see a marked improvement in the quality of online

reporting in 2009. Best practice will eventually emerge but it will be based

on online innovations that are appropriately used to enhance stakeholders’

overall experience and understanding of a company’s strategy.

FROM GOOD TO GREAT:HOW SITE ANALYTICS ARE HELPING TO IMPROVE AVIVA’S ONLINE REPORTING

STUART BARTRAM : SENIOR MANAGER, CORPORATE INTERNET & DESIGN : AVIVA PLC

GET IN

TOUCHAbout salterbaxterEstablished in 1998, salterbaxter is one of the UK’s leading creative consulting businesses.

We advise organisations on corporate branding, corporate responsibility, employee

engagement, corporate reporting and digital programmes.

If you would like to fi nd out more about us, please call or email Louise Dudley-Williams

T: +44 (0)20 7229 5720. E: ldudley-williams@salterbaxter.com

JOIN THE DEBATE: www.salterbaxter-rethinktank.com

AT AVIVA WE ARE KEEN TO CONSTANTLY IMPROVE OUR ONLINE REPORTING, AND MEASUREMENT PLAYS A KEY ROLE IN HELPING US UNDERSTAND HOW READERS USE OUR HTML ANNUAL REPORT.FEEDBACK AND USER TRACKING ALSO PLAY A PART IN DETERMINING WHO, WHAT, WHERE, WHEN.

Visitor numbers to our online annual report has consistently risen and since

2005 visits have been up 52% year-on-year. The 2008 online annual report

site received 19,719 unique visits, or to put this in context, this amounted to

2.5 visits every hour of every day.

Interestingly, 75% of people visiting the Aviva online annual report site also

downloaded the PDF of the printed report. That tells us that investors still

want to refer to a paper version, no matter how compelling the interactive

features of the report are.

The most popular area of the report site, after the homepage, was the

fi nancial statements, followed by the overview and business review. As

the fi nancial section was the most visited area of the site we felt it was

important to provide this section in a compelling way for this specialist

audience. Unsurprisingly, the ability to view the fi nancial statements in

Excel was popular amongst institutional investors.

How users get to the online report is also revealing. We know 74% of traffi c

to the report was directed from the corporate site. This tells us that we need

to make the report link as prominent as possible on the corporate

homepage. Whilst the initial visit length to the site was good it was felt more

could be done to make the content more relevant for returning visitors.

In response to user feedback we have made sure the corporate and investor

sections are both aligned with the annual report and accounts story. We

have also provided contextual links throughout the corporate site to help

increase traffi c to the report and show how the performance of the business

is integral to the corporate structure of our main website.

By measuring statistical results we know that access to the online report

was both wide and deep, with report users entering and exiting through the

main site. The feedback we get is helping us to keep it simple and provide

investors with content in the most appropriate ways. Reviewing site analytics

and understanding our users’ online behaviour is providing us with valuable

insight to improve our overall online reporting programme.

These types of metrics are not the ‘be all and end all’ for us, but we know

they give us deep insight into how readers actually use the online report.

THE ONLINE REPORT: WHY ONE SIZE DOESN’T FIT ALL CONTINUED